J.P. Morgan Staring at Record $11 Billion Settlement

9/25/2013 6:54PM

J.P. Morgan Chase is in discussions to settle probes related to mortgage-backed securities for $11 billion. WSJ's Devlin Barrett says the amount being discussed would include $7 billion cash and $4 billion in relief to consumers.

This transcript has been automatically generated and may not be 100% accurate.

I ... justice is in talks for what could be the single largest one company settlement they ever struck ... a a potential deal with J P Morgan Chase and company ... for as much as eleven billion dollars ... although we're told is the negotiations the discussions are so fluid ... at the numbers could change drastically ... as they continue to talk ... what's happened has been a pretty intense forty eight hours of discussions ... one when JPMorgan offered three billion dollars were told to try and resolve ... one of the investigations of its ... residential mortgage backed securities this is the stuff that led to the ... crisis the financial crisis ... in two thousandseven in a ... and the Attorney General ... Eric holder were told rejected that figure ... and it's what you seen since is essentially forty eight hours of intensifying discussions ... with huge sums of money ... eleven billion dollar number that that we're hearing now ... would consist of about seven billion in various sorts of fines and penalties and four billion in what's been described as ... some sort of relief program for consumers ... not really clear how that would work and I don't know that there's even gotten to the mechanics of that ... and what they're talking about would represent ... the largest kind of settlement ... I like this that that just Partners overreached ... by day we were told ... that it is also fall apart these are essentially conversations ... the numbers are huge issues are very complex and it all fall apart ... if it does fall apart we expect the just are to file a lawsuit against J P Morgan very soon ... and they're going to try to resolve this were told by next week ... but it's still very unclear and a lot could change between now and tomorrow we're now and next Monday ...